Definitions for "Interest option"
One of the settlement options. Under the interest option, the proceeds of a life insurance policy are held by the company to earn interest and that interest is paid periodically to the beneficiary. The total insurance benefit is not paid out until some unspecified date in the future.
A life insurance policy settlement option under which the insurer invests the policy proceeds for the policy beneficiary or policy payee and the interest earned is periodically paid out annually, semiannually, quarterly, or monthly. See also settlement options.
A life insurance settlement option under which the proceeds of a policy are temporarily left on deposit with the insurer and the money earned on those proceeds is paid annually, semiannually, quarterly, or monthly to the beneficiary or other payee. | Back